Speaking with a mortgage lender is a great step to take when you want to buy a house and need a mortgage to make this happen. When you talk to a lender about getting your first mortgage, you might have some questions. Most first-time homebuyers have many questions, and here are some of the best ones to ask as you prepare to get your first home loan.
What Factors Affect Your Eligibility?
As you prepare for your first home loan, you might wonder about the factors that lenders use to determine your eligibility. What will the lender evaluate before giving you an answer? Most lenders evaluate three primary things: credit, finances, and income. If you need further information about these things, talk to your lender. Your lender can give you specific details about what they look for when assessing loan applications.
What Is an Escrow Account and Why Do You Need One?
You might also want to ask the lender about escrow. What is an escrow account, and why do you need one? If you do not understand what an escrow account is, make sure you ask. Most lenders set up escrow accounts for borrowers. These accounts help homeowners save money for property taxes and home insurance, and you might need one when you take your first home loan.
What Loan Options Can You Choose From?
Next, you might want to ask your lender about your loan options. Do you get to choose the loan duration? Do you have a choice between a fixed rate and a variable rate? You might have options when borrowing money for your first home purchase, and you can talk to your lender about these.
How Much Are Closing Costs and How Do Pay for These Expenses?
The final question you might want to ask is about the closing costs. Closing costs are fees that you must pay when you get a home loan. You pay these when you buy a home and pay for the closing costs, and you pay them if you refinance a home loan you have. Your lender can give you a breakdown of these costs and help you determine how to pay for them.
When you apply for your first home loan, you might have other questions. If so, make sure you talk to a lender to find the answers you need. If you are a first time home buyer, contact a local lender for more information.